Brilliant news both for domestic air source heat pumps owners and those, who are just planning to have a renewable heating solution installed for their homes.

On September 20, 2017 the government issued new amendments to the RHI Scheme Regulations. Let’s have a closer look at what it means for current and prospective HP users and if there are any radical improvements so far.

This is the first stage of the RHI enhancement initiatives supported by the government in collaboration with the Department for Business, Energy & Industrial Strategy (BEIS) that develops the scheme policy and rules, and the Office of Gas and Electricity Markets (Ofgem) that implements and administers the scheme.

This first bunch of amendments to the scheme deals predominantly with new tariffs, demand limits for domestic heating and budgeting policies for air, ground and biomass energy sources. It will be due up to July 2018, when the second part of changes will come into effect and be extended until 2021. To see these new regulations in detail, please, follow the National Archives link .

For those, who are more interested in dry facts, we have prepared some statistical data in a nutshell.

The Department of Business, Energy and Industrial Strategy (BEIS) is in charge of setting a tariff policy both for existing and newly-approved customers. The tariff rates for new applicants may be reduced in case when payment amounts exceed a set threshold. It is commonly referred to as the degression.

The tariff rates are subject to be reviewed every quarter. It should be noted, however, that you will be eligible for new quarter degression benefits providing only you are done with an RHI application during a foregoing period. As you may see at the table below, the degression seems to be promising until now. To keep tabs on further update, please, refer to the Ofgem official website RHI page .

In April, 2017 the government introduced a new budget cap plan for 2017-2021 fiscal years. It means that the overall expenditures covering the RHI scheme participants’ annual costs must not be higher than a pre-set limit. In case of overspending, the scheme may be put on hold. There is nothing, however, to worry about – at least, for next 5 years, since the BEIS figures spell significant increase in budget caps for the upcoming period. As you may learn from the table below, they have also showcased robust estimates of committed spend for the years to come.

All the above-mentioned statistical data will definitely instill confidence in those, who are still on the fence about having a renewable heat pump installed for their homes. Whether you are curious about cost-efficient domestic solutions for house heating and hot water, please, do not hesitate to contact our experts and get a free consultation .

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September 29, 2017 89

RHI Improved: New Government Regulations to Help You Save Even More on Heating